Researchers from Crest View International have commented on recent developments from Exxon Mobil as its second quarter profits fell more than 20 percent from the previous year, primarily blaming weaknesses in natural gas and petrochemical prices.

Researchers from Crest View International noted that Exxon also said its oil and gas earnings fell even though it increased production, largely because of higher spending and lower natural gas prices.

“Exxon earned $3.1 billion in the second quarter, down from about $4 billion in the same period in 2018. The oil major's revenues fell to $69.1 billion, down from $73.5 billion.” Commented James Turner, Director of Sales & Trading at Crest View International.

“Total revenues declined from $73.5 billion down to $69.1 billion.” Added Nathan Hu, Head of Research at Crest View International.

Exxon Mobil's $8.1 billion in capital spending was up 22 percent because of focused spending hikes in the Permian Basin, where Exxon is now the most aggressive driller with close to 50 rigs at work.

As such, Exxon's oil-equivalent production was up 7 percent from last year with 3.9 million barrels per day, driven by Permian growth and reduced downtime. Natural gas volumes rose 5 percent.

Exxon's Permian shale production is up more than 90 percent from a year ago.

Outside of the Permian, Exxon Mobil's other big growth driver is offshore of Guyana, where the first development, Liza Phase 1, will start producing oil this fall. Exxon said it hiked its estimated recoverable reserves offshore of Guyana from 5.5 billion barrels of oil equivalent up to 6 billion barrels.